Tata Steel to sell majority stake in Southeast Asia business

Tata Steel Ltd said it has decided to sell a majority stake in its Southeast Asian businesses to a company controlled by China's HBIS Group Co. Ltd for $327 million (Rs 2,326 crore). The Indian company said in a stock-exchange filing it will sell its 100 per cent stake in NatSteel Holdings Pte. Ltd and 67.9 per cent stake in Tata Steel (Thailand) Public Company Ltd. HBIS will own a 70 per cent stake in the company that is buying the assets while Tata Steel will hold 30 per cent. The latest transaction reduces Tata Steel's overseas footprint even as it adds muscle at home. Last year, Tata Steel took control of debt-laden Bhushan Steel and agreed to buy the steel business of Usha Martin. It also joined hands with Germany's Thyssenkrupp for its European business. T.V. Narendran, CEO and MD at Tata Steel, said the deal offers the Southeast Asia business robust growth opportunities, given the access to resources, technical expertise and regional understanding of HBIS. Tata Steel entered into a definitive agreement with HBIS through wholly owned subsidiary TS Global Holdings Pte. Ltd. The transaction is likely to be completed in three to four months' time, subject to regulatory approvals.